Skip to main content

tv   Closing Bell With Maria Bartiromo  CNBC  August 12, 2013 4:00pm-5:01pm EDT

4:00 pm
the traders make their way past us. thank you. 15 seconds left with the dow down 4 points. looks like we will finish slightly lower. we have a lot to cover here. who could buy blackberry? what is the futuristic transportation system elon musk has up his sleeve? we'll find out on the second hour of the "closing bell." it's 4:00 p.m. on wall street. welcome to the "closing bell." i'm kelly evans in today for maria bartiromo. bill will be joining us in a second. the stocks are struggling to find direction today. here's how we're finishing the day. it looks like a down day for the dow and s&p 500. we're still waiting for things to settle out. the nasdaq, though, managing perhaps a small positive here, helped by the performance of tesla and apple, to some extent, i'm sorry, not tesla, but by apple to some extent. we'll keep an eye on the components of that index, as well. we've come off a week where just 10 days ago, we were at record highs, the dow jones industrials average, and now, bill, about
4:01 pm
250 points shy of that level. still, though, only a couple of percentage points in the grand scheme of things. >> yeah, bob, it's one of the days when the averages don't tell the things. we had mergers. we had more earnings. we had a lot of storied stocks to talk about today. >> reporter: yeah, considering nobody cares about apple, it's supported in the nasdaq, and it's the reason we outperformed. we've been in the narrow range. look, we're 1,580 -- or 1,680, put up the s&p, essentially a month now. what will break us out of the particular range here? number one, a little thought here, i just want to put you down here with some thoughts of what will matter. underperformance may not be -- or it may be enough for us. we'ven up, down, only 2%, 3% corrections for most of the year. just another 2%, 3%, to the downside, that's all that's necessary for people to come in and buy. stability after tapering in september. my feeling is we get the tapering, we drop 3% on the s&p over a period of several days, and then we rally back.
4:02 pm
the big x factor is whether the german elections and europe stays stable. september 22nd, we see problems, of course, in greece. it looks like they need another bailout to me. but that's where a problem could possibly occur in the next four to six weeks. let's look at the overall markets today. china, again, a major factor. look at coal stocks. 8% in the last few days, because china economic numbers have been enough. steel stocks. another 8%. these are one-month chart, the slx. you can buy these etfs. again, because china is doing better. there's the effective better economic numbers we're seeing on the overall markets. elsewhere, another day here. tech stocks outperformed. apple, right near a six-month high right now. of course, just announcing the iphone may come out, from a rumor, enough to move that stock up. considering nobody seems to care about it, the company seems to be doing all right right now. if you are wondering why is the dow lagging again today, this has been going on for days now, and one of the primary reasons is big oil has just slumped,
4:03 pm
ever since exxon came out on august 1st. down 4%. chevron is down 3%. and, bill and kelly, very simple here. they cannot grow. exxon does 4 million barrels a day. they're losing about 6% a year. and they're having a hard time replacing that. that's one of the big problems with oil right now. yes, we've got an oil boom here in the united states. a lot of it's shale, and those are very shallow wells. back to you. >> bob pisani from the floor. >> laws of big numbers have caught up with them, at least, for exxon. >> a sector not benefitting the way you might think from the high oil prices. thank you, bob. >> joining us i ryan, tom here from capital land colt capital, did i say that right, and josh brown from fusion analytics. guys, thank you very much for joining us. peter, i want to start with you. how important is it here for people who are watching the china story, saying there's a turn, and pointing to the u.s. markets benefitting as a result? >> well, the chinese stock market has completely disconnected from the u.s. market over the past year and a
4:04 pm
half. even after last night's rally in the shanghai index, it's still down more than 7% year to date. but the stabilization and the rebound is enough to lift the huge laggard in the u.s. market, and that's metals, mining, and any of the deep, deep dickly cals. for a market constantly using for rotation, the chinese bounce was enough to find some value seekers in those names. >> tom, we talked last hour about maybe overthinking the fed thing. you still feel that this is job one in the stock market right now? >> that's right. fundamental analysis has taken a backseat. if you look at something that just says earnings, here you have s&p earnings growth, what, 1.7% in the last quarter, 3% in the first quarter, historical average is 7%. so it's clearly the market advancing this year is not about fundamental analysis. >> so is this -- >> purely quantitative easing. >> is the fed in favor of the stock market now, or against it with all of the taper talk going
4:05 pm
on? >> listen to me, the fed cannot taper now. they're not going to. a 1.8% gdp print. there's nothing else out there. sentiment stinks. everybody needs wall street in the household balance sheet to improve. this is how it happens with stocks going higher. we don't need qe to start tapering. >> let me point out a couple of things. ryan, i want to bring you in. there's two reasons i push back on what todd just said. the first is the stock market's up 19% this year, despite the weak growth. and the second one is the paper just out from the san francisco fed, where it comes to the conclusion qe may be helping, but maybe it's not. in fact, it's just the promise to keep rates low that's important for the markets here. i'd love your take on this. does that explain why the fed may be more eager to back out of the market than you would otherwise think in a weak economy? ryan? >> yes, okay. i mean, that's a great point. you build on what todd just talked about, you know, this market, yes, we've gone up on the fed. when you talk about what's also driven us, it's been fear. look at the popular trade this
4:06 pm
year. it's been the buying volatility, buying the vix calls. last week, record vix call trade. comparing that mentality to what we saw in 1987, i've seen a lot of talk about '87, '87 no one expected a pullback. people were selling puts on index options. the idea of a pullback was not there. now everyone is hedging with higher volatility, and yet it stays low. to me, this is not '87. this is more like '95, the slow grind higher. the s&p has pullback, people are excited here. we get the fear of the pullbacks and that also pushes us higher, in my opinion here. >> yeah, on wall street, josh brown, we love putting the historical tell platts on the market, figuring out, is it the market of '87, is it the '95 that could lead to higher gaens toward 2000? where are we in your historical scenario? where are we in your almanac? >> the market is exactly like 1954, here are ten reasons why. this is 2013. [ laughter ] listen, it's -- >> i knew what i was getting
4:07 pm
myself into. go ahead. >> it's a fun parlor game. i could play. look, let's keep this really, really simple. we're coming out of an earnings season that was okay. it wasn't a good earnings season. >> right. >> it wasn't disastrous, like every earnings season over the last four quarters have been predicted to be. the simple fact is we haven't earned the right to get to the next level. you already have a 16 multiple on the market. what do you want? an 18 multiple? because we're growing at 1% on the bottom line? you're not going to get it. so one of two things can happen here. either we get the true cyclical recovery, and with it earnings start to be revised higher, particularly revenue. >> right. >> or we don't. and the fed sticks around and continues to add money. but you can't have it both ways. >> all right. >> you won't get a market trading substantially higher until there's real growth. >> let me get our panel super bowl to answer on that. >> you can't look at historical analysis. this is a different time. you could talk about any year you want in the past. it doesn't matter. it's all about the fed. look, this is a market-driven
4:08 pm
headline market that only -- >> todd, can the fed -- can the fed get the p/e multiple to 20 with no earnings growth? >> they don't care about the p/e multiple -- >> i'm asking you if that's what the is driving the market. can the fed do that? >> you have a number this week, key earnings from retailers. retail sales coming out tomorrow. look, we could talk about the fed, the health of the american consumer. it's just not there. this economy cannot stand on its own, and this is why the fed does not pull back. >> peter, i want to get your take on this. it's been sort of the tepper argument, right, so far, during this recovery, that either the market's weakened, the fundamentals are weak so the market is there. has there been a shift going back to what happened in may where there's some concern about financial stability, things looking frothy, and has that changed the bernanke put to a call or something? >> we've seen a dramatic shift in the u.s. bond market. the five-year note yield has doubled. the 10-year yield is up 100 basis points. and a lot of interest rate sensitive groups in the stock
4:09 pm
market have pulled back more than 10%, with homebuilders down more than 20%. yes, we've seen a shift on just the discussion of a possibility of future tapering. now that we've gotten four fed members just last week basically saying it's likely to happen, that's all you need to cap this market. and to get simplistic, the market is fed by qe, and any step back will negatively impact the market, like we saw at the end of qe 1, qe 2. granted, qe 3, 4 will go on, but the possibility of a slowdown is enough to cap the gains in the market over the next few months. >> all right. thank you, all. josh, good to see you again this hour. we'll just take the indulgence and say, josh brown, if you look for him on twitter, one of the more entertaining financial tweeters out there. good to see you. thank you, guys. thanks, todd. watch your back, technology. financials are on their way to retake the s&p's top spot. we'll find out next which ones are leading the charge and the names that still could be cheap right now.
4:10 pm
>> then, what's happening over at aol? reportings of an internal conference call seems to have the ceo firing a guy. then, is blackberry putting itself up for sale? the shares spiked today, 10%. they're up 10%. we've got the latest on the beleaguered technology company. plus, who anyone would be interested in this company. we have some names to name for you. all on the home for all things blackberry, that would be "closing bell," coming up after this. o the lexus golden opportunity sales event and choose from one of five lexus hybrids that's right for you, including the lexus es and ct hybrids. ♪ this is the pursuit of perfection. ♪ lecoca-cola is partneringg. with nashville parent and charlotte parent magazines, along with the mayors of those cities, in the fit family challenge. a community wide program that offers free classes
4:11 pm
that inspire families to get out, enjoy moving together, and even track their activity online. it's part of our goal to inspire more than three million people to rediscover the joy of being active this summer. see the difference all of us can make... together. to experience the precision handling of the lexus performance vehicles, including the gs and all-new is. ♪ this is the pursuit of perfection.
4:12 pm
4:13 pm
welcome back. well, financials have quietly become one of the best performing sectors of the year and may soon once again take the top spot in the s&p 500 as the most valuable sector. quite the turnaround from the depths of the financial crisis. josh lipton breaks it down for us. >> reporter: bank stocks powering higher. so far this year, the group takes the bronze after consumer discretionary and healthcare, names like morgan stanley, citi, goldman sachs, all enjoying nice moves to the upside. some of the regionals also impre impressive. keycorp, sti, bbt, moving higher. taking a step back, how has the group performed since march 2009?
4:14 pm
remember, from the market peak in october 2007 until the lows in the spring of 2009, the financials nosedived some 80%. that was the worst of the 10 industry groups in the spx. since then, the financials have rebounded hard. the second best performing group, up more than 200% behind consumer discretionary. despite the move, financials, though, still some 40% away from their level in the fall of 2007. now, i spoke to jason goldberg today, managing director at barclays, how does jason explain the performance this year of the bank stocks? among the reasons, he says, an improving economic environment, clarity on regulatory measures, improving credit quality, and giving back more to shareholders, increasing dividends, buying back stock. goldberg still optimistic from the bank stocks from here. to the extent we see an improving economy, he says, the group is leveraged to that. he rates citi, jpmorgan, wells fargo, all overweight. kelly, back to you. >> sure. that would suggest they still have room to run. thank you, josh.
4:15 pm
anton says there is still plenty of upside momentum left. >> we're going to find out where he sees the opportunities. he's joined now along with jeff hart from sandler o'neil who has the best buys in financials, as well. anton, explain this to me. why they're doing this well. they've got all kinds of regulations being thrown at them. the capital requirements are going up. interest rates are still at record lows, and yet we're talking about how strong the financials are. what is wrong with this picture? >> well, the economy's perking along. i mean, what's more sensitive to housing than financials? and that's really important. you're seeing housing recovering across the entire country. so what's bad on the balance sheets is now recovering. and the capital markets are performing reasonably well. we're seeing record highs in the dow and the indices, so people are getting secondaries done, getting ipos done. last week, a lot of ipos done late in the week. it's good for earnings. >> jeff, you think it's echoing what anton was just saying that the bank shares can still keep the momentum up from here, because it's interesting,
4:16 pm
they're all down today. you have to wonder if one detention in reuters if it's not only the "business week" effect of calling the top. >> yeah, i think especially in financials and banks, you need to look at the money center banks, the big guys -- citi, jpmorgan, even bank of america. i think they're in that unique sweet spot where if the economy really gets hot, the stocks will do well. they always do. if we keep chugging along like this, i think the stocks can do well, because they're getting more and more efficient. they're focused on that. the risk is, do we have another collapse in the economy? i don't see that coming. so i would definitely stay with the money center banks, the large caps. as you move into some of the regionals and smallers, you know, they've had 50% runs over the last 18 month, really had an amazing run. i think it's less attractive there. i'll still constructive on the space. you know, second half of last year, i'd say sandler o'neil was bullish on banks and financials. right now, we're still bullish, but not maybe jumping up and
4:17 pm
down as much as we were. >> what about you, anton? you go to the big guys or the regions? >> i like the bar bell approach. i agree completely with jeff on the big guys. the small guys, i'm a stock picker, so looking for activity. looking for deals that add value. looking for smart companies that understand they're hitting the wall and will sell to a buyer whose stock price will go up on that deal announcement. >> there are legal challenges -- i'm just looking at your list here. bank of america, jpmorgan chase, you know, the feds are going after these guys at the same time. >> yeah. >> that doesn't affect your view of them? >> well, i mean, they are cheap for a reason. as they keep building capital, as the marks keep getting stronger, they become relatively cheap. the other thing that will happen here is if the regulators keep beating them up to death and the capital markets keep staying healthy, if they want to divert their businesses, they'll be able to do it at better prices. if they want to devest the capital markets business, the market's finally getting healthy enough they can ipo these things if they wanted to. >> let me ask both of you quickly, as well, from the general investor's point of view, jeff, is this the kind of
4:18 pm
market you want to see where financials do reclaim the title as the biggest piece of the market? >> well, we don't need financials to go back to kind of where they were, but certainly more respectable than they are, because they're very important for the economy. on the litigation side, i mean, these guys have big reserves built for a lot of this stuff. the further we get away from it, the smaller these risks get. so there's still a lot of headlines popping up. at least what we've seen recently is a lot of the settlements aren't having eps impacts so they've set up reserves against it. headline risk may persist, but it's not that life threatening feeling it had a couple of years ago. >> too big to fail, anton, in a word? >> you know, i think that comment is made up. you know, you can't let companies that are that important fail, period. but their balance sheets are so much stronger. reserves are stronger. capital's much, much stronger. >> okay. >> so -- >> good to see you both. good conversation. >> how far we've come. >> yes, indeed. >> and maybe we haven't come far at all. is he the problem or the solution? someone says bill ackman has
4:19 pm
done more harm than good for the struggling retailer. we'll discuss both sides of the hot-button issue next. plus, hello? you're fired. can you imagine getting canned during a conference call? there's a way to find out. aol ceo tim armstrong did just that. he tells on the shocking story coming up, and you will actually hear that moment when he fired that person coming up. and how's this for a vacation surprise? luxury condo near disney in orlando collapsed into a sinkhole. we'll get a live report on this. you won't believe the pictures when we come back.
4:20 pm
in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. chalky... not chalky. temporary... 24 hour. lots of tablets... one pill. you decide. prevent acid withvacid 24hr.
4:21 pm
before global opportunities were part of their investment strategy... before they funded scholarships to the schools that gave them scholarships... before they planned for their parents' future needs and their son's future... they chose a partner to help manage their wealth, one whose insights, solutions and approach have been relied on for over 200 years. that's the value of trusted connections. that's u.s. trust.
4:22 pm
you're fired. this incredible story, if you haven't heard this yet, aol's ceo tim armstrong embracing his inner donald trump, if you will, firing a top executive during a mass company conference call. julia boorstin has the incredible details. julia? >> reporter: bill, aol ceo tim armstrong is looking to turn patch postable by year end as he promised investors he would. so he hosted a conference call with over 1,000 patch employees to tell them if they're not on board, they should leave. media blog john romesco secured a leaked clip. >> if you think what's going on right now is a joke and you want to joke around about it, you should pick your stuff up and leave patch today. and the reason is, and i'm going to be very specific about this, is patch from an experienced -- hey, put that camera down right
4:23 pm
now. abel, you're fired. out. he was talking to abel lenz who regularly took photos during meetings. he said, i'm no longer working in this role with patch, those cnbc has confirmed his firing and aol has not commented. armstrong may be upset about more than just taking photos. patch's network has been struggling for years, pushing armstrong to take extreme steps to stop it from bleeding cash. he's looking to close or find partnerships for 400. patch's 900 local sites. and armstrong has a personal connection. he co-founded patch and sold it to aol in 2007 before becoming aol's ceo two years later. now, armstrong's comments have drawn a media storm, in part because the harshness stands in contrast to his reputation. at aol and google before that, he was a well-liked executive. >> not to make light of it, but it is ironic that a man named
4:24 pm
lenz was fired for taking a picture today. >> you know, bill, not enough people have focused on that piece of this issue. you're fired. no, i'm kidding. >> thank you very much. thanks, julia. >> thank you. meanwhile, the jcpenney saga continues. reports say the board wants to find a way to oust bill ackman, calling for the replacement of mike ullman, the story evoking a lot of reaction. howard schultz calling in to maria on friday to defend ullman. here's what he had to say. >> mike ullman came back really to try to save the company, and what's so perverse here is that he is trying to save the company that bill ackman has basically done severe damage to. and for ackman to do what he's done the last 24 hours is not only irresponsible, but it's destructive behavior. and if i was sitting on that board, i would be asking for bill ackman's removal. >> all right. so let's talk about it. is bill ackman the problem or the solution for jcpenney? we have with us jason rotman.
4:25 pm
he says ackman is good for jcpenney and its shareholders. former m&a banker and killing wall street author sanjay says howard schultz is right, ackman is at fault for bringing jcpenney to this point. also with us, cnbc contributor, jeff sonnenfeld, senior associate dean of executive programs. you're against ackman, as well, right, jeff? >> absolutely. count me in the negative vote. sorry, jason. >> that's okay. jason, defend bill ackman. why is he good for jcpenney? >> there's a reason that bold and billionaire begin with the same letter, b. people tend to forget that ackman does have a fairly decent track record to say the least. herbalife notwithstanding. canadian pacific, general growth. the guy's crushed it over the past decade, and obviously, he's gotten himself into hot water with the public, and it's really easy to just jump on the band wagnd and bash ackman, but he's bringing attention to jcpenney. he owns 17% of the company.
4:26 pm
he wants success of the company and he's doing what he thinks is the best path for that. >> sanjay, you know, there's style and then substance here. people may take issue with the style and the way this has played out in public, but is the substance of bill ackman's argument right? >> bill ackman is asking bill ackman to give situation in this situation is asking the fox to guard the henhouse. he's been influential with this company for sometime and has been responsible for the really bad decisions jcpenney has made -- >> such as? >> -- the appointment of ron johnson of ceo and then the appointment of mike ullman, both of which he was directly responsible, and now he doesn't want them anymore. he keeps changing his mind. >> he wants the shares price to go up. why do you think he would do something that would hurt share price of the company he owns shares in? >> because bill ackman can't get out of the way of bill ackman. he likes to mettle in corporate affairs. he has the distinct vision of what he wants to do. unfortunately, it's not a
4:27 pm
business vision. there's no strategic plan for this company. they have lost the opportunity to break through the online segment in a bigger way, which is what they really need to do. so i think somebody needs to be an adult in this situation and do something that's actually in the best interest of the company. >> jeff, if the board decides ultimately that's what they want to do, they want ackman out of their hair, what are their options here? >> well, let me just say that jason began, kelly, by playing off the me lit racials of the faberable words that begin with b. there are plenty of other words that begin with b and that's baloney and bullying. that's what he's full of. you could come up with worst words. this board's definitely had a shattered breach of confidence of trust with one another when you take confidential strategic staffing positioning information and take it to the outside world, that's a big problem. he can dissent all he wants on the inside. when he makes the board dysfunctional, he's been crashing the stock here. sanjay is right, that some of the recent bad decisions over
4:28 pm
the last 18 months lay at the feet of none other than bill ackman, bringing in ron john. virtually anybody will tell you off the apple board, or most apple employees, the genius of the apple stores was mickey drexler off the board, the great retailing genius. >> right. >> and steve jobs himself, who was turning over the tables and looking at the seams. the guy going off to the trade shows with self-promotional discussions was ron johnson. now, even if you make that mistake, the board stuck with it. but especially, bill ackman kept sticking with a failed leader and he invested on a faulty premise. he thought he could make a big splash and shake things up. instead, he's making a splash like rosie o'donnell and the donald with their mud splashes around -- >> yeah, jason, bill ackman means well. i mean, he's being disruptive at this point. >> he's acting like a flag boy. >> if i could just jump in. yes, he's being disruptive, but that's not a bad thing. >> he's disruptive and
4:29 pm
dysfunctional, it is a bad thing. it's bad thing. he's crashing -- and he's doing what he feels is in the best -- >> one at a time. go ahead, jason. >> what i like to say is that bill ackman is being pounded on by 100% of the corporate world and the media, i think unjustly. there has to be someone to create the counterpoint, which is factual that bill ackman has a phenomenal track record of investing. i mean, he's not some guy with $1,000 brotherkerage account tr to figure things out. he is a hedge fund manager that's turned around two companies. >> just not this time, though. >> i think the future of jcpenney is unwritten and we need to let bill ackman be bold -- >> guys, let me get one last comment from sanjay. sorry, jeff. >> jason is counting ackman's successes, but what about herbalife? he has $1 billion short in the company that he thought would go down to zero.
4:30 pm
the stock price is up 100% year to date. he's dead wrong. so his investment acumen may not be quite as infallible as bill ackman thinks. -- he can move forward. this is not a convenience store we're talking about. this is a $3 billion company with thousands of employees. ackman needs to do the responsible thing here. >> all right. we need more time, guys. it's a fascinating story. there may be new developments coming our way in the next 24 hours. thank you all for joining us. eat or be eaten. reality "shark tank" investor barbara corcoran coming up on the key things that she looks for in start-up businesses. plus, we'll get her take on the recovering real estate market that she knows a thing or two about, as well. >> yeah, a little bit. also, gold on a winning streak. the question is, are the worst days behind for gold? is it somewhere where investors should put their money? and wait until you see the sinkhole we've been talking about that swallowed up part of a condo luxury resort.
4:31 pm
[ male a] at his current pace, bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪
4:32 pm
if you don't have something important to say? could save you fifteen percent or more on car insurance. yep, everybody knows that. well, did you know the ancient pyramids were actually a mistake? uh-oh. geico. fifteen minutes could save you...well, you know.
4:33 pm
welcome back. let's get straight out to josh lipton with a market flash. josh, yum? >> reporter: yeah, watching yum here, falling in the after hours.
4:34 pm
the news yum reporting july comps for the china division dropping 13%, and it includes an estimated decline of 16% at kfc. yum, of course, in china, dealing with the headlines of a bird flu outbreak. china same-store sales expected to recover, but it is down 4% in the after hours. bill, back to you. >> all right, josh, thank you. let's talk gold. the spider glde is seeing the first inflows in nearly two months, plus gold futures have been rising to a near three-week high. why the sudden interest in the precious metal, he asked? >> with us now is wolfgang, and, what's your take on this? >> well, my take on this is much about the same thing. it's the uncertainty starting to come back into the market. we're coming out of the summer. i've been all over europe, as well as talking to many corporations, and we're seeing uncertainty about the markets and about the financial situation isn't all gone. so people are going to start
4:35 pm
looking at flight to quality again. when we look at it, we look at it more from talking actually to corporations and relating it from currencies to gold, which is a little bit. a different approach. but the result is the same thing. >> regular viewers of this program know i have no idea what makes gold move these days. is it a breath mint or a candy? is it an investment or a hedge? you seem to be suggesting it's a hedge, right now, yes? >> well, i'm suggesting it's actually the reaction to what the markets are doing, and it is more of a hedge. and, therefore, people are moving into it. so that is correct. when i look at this thing -- go ahead, kelly. >> no, i'm sorry. go ahead. >> the way i look at it, instead of looking at the fundamentals, like you, bill, i don't know, maybe you do, i don't know how to value gold per se. >> exactly. >> all i can look at -- so how does it look at from corporations' point of view? they're managing risks. they're managing the currencies, very relative. if you saw, for example, the aussie dollar coming up
4:36 pm
significantly, that was somewhat related. it's, again, uncertainty. rupee, again, impacting and seeing more uncertainty. >> wolfgang, curious if you can correlate this behavior with the broader market and say whether it's the canary in the coal mine to some extent? is gold rallying here, telling us we're about to see weakness in the s&p 500? >> i do believe that you're going to see increased uncertainty, and that's going to come in. people are going to start focusing, for example, on the german election, what's merkel going to do? that uncertainty will get more buyers into the market. >> how much higher? gold? >> i don't know. >> you knew i would ask. come on. >> yeah, i know. and i -- we're going to test uncertainties. again, volatility will increase again. >> 1,500? 1,600? the old highs? >> i don't know. >> okay. >> love the honesty. >> i love that. thanks, wolfgang. >> thanks, guys. >> jinx. >> salt and pepper.
4:37 pm
blackberry trying to send a message. is it -- anybody want to receive this message right now? that's the question. right? >> your favorite smartphone, bill, looking at keeping things private. we're not talking about phone numbers. we'll look at blackberry's potentially bold move next. and we'll begin a special week-long series, the reality of reality tv. we'll look at five reality stars who have helped transform the tv business and are changing businesses across america. coming up, the first lady of real estate, "shark tank's" barbara corcoran will join us. m? always go the extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied
4:38 pm
as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. but when it comes to investing, i just think it's better to work with someone. someone you feel you can really partner with. unfortunately, i've found that some brokerage firms don't always encourage that kind of relationship. that's why i stopped working at the old brokerage, and started working for charles schwab.
4:39 pm
avo: what kind of financial consultant are you looking for? talk to us today. this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fifty thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally.
4:40 pm
ally bank. your money needs an ally. welcome bachlkt blackberry is trying to press all of the right buttons in the wake of its product lines. jon fortt has been studying the company's options and joins us now. >> reporter: it comes down to this, kelly. they've got to either gain major share, get bought, or go private. and gaining share doesn't look likely. blackberry shipped 2.7 million units in the spring, which should have been a big launch quarter. and nokia did far better with almost 8 million units in its lumia line. get bought? hard to imagine who would buy it. apple and samsung already have leading platforms. they don't need the hardware help. microsoft's beating blackberry on store shelves lately. and dell, it has plenty of challenges without buying a canadian company for $2-plus billion, and it's not known for a company having
4:41 pm
trouble with government contracts would be taken by a chinese buyer. there's lots of money out there that seems willing to take resks. if take blackberry private, you probably have to make it a software and services company to make the math work. guys? >> all right, jon, thank you. this is one of great water cooler games going on. what do you do with blackberry? we know there are members of the "closing bell" team who would like to buy it -- that was a joke we were bandying about this morning. who could be potential buyer and does anyone actually want this company? joining us right now, roy troy from technobuffalo and jefferson gram from "usa today," good to see you. roy, what do you think? they put the for sale sign out. is anybody going to take it, do you think? >> there is the possibility of microsoft or samsung coming in. you know, jon just mentioned that samsung's probably not going to buy. but samsung's been known to just spend a ton of money just for the sake of causing a little bit of uneasiness for google. you know, they've had a relationship between google and
4:42 pm
samsung where, you know, it's a love/hate relationship. and google loves the fact that samsung has helped grow the brand. at the same time, they're very worried that samsung may be too big for their own sake. >> why would that be a threat to google here, jefferson? >> the big question is, again, everyone's been saying, why does anybody want a company that has been able -- has just failed to revive itself. and i think, you know, it's really tough to pull it off. they're going to need millions and millions and millions of dollars. and i think that the blackberry ship has sailed. i think it will be tough to find any buyer. i think maybe broken up into many pieces. >> is it a technology deficiency or just a lack of sales acumen, do you think? >> i don't think -- i think people love their blackberry, but they've moved on. the android platform has become so popular all over the world that it just grew so fast,
4:43 pm
because, as you know, the software's given away for free to the companies and the companies love working with a free software company. >> definitely. >> it just dwarfed blackberry. and blackberry wasn't able to compete. >> if you look at blackberry 10, if that operating system came out five years ago, or even just three years ago, it would have stood a chance. but, you know, apple's iphone is, itself, a giant machine. but android on a daily basis gets better and better. and it just seems that blackberry is just playing catch-up. there's no innovation, whereas on the android platform there's different search features, different mapping features that android is going above and beyond what blackberry's doing. i mean, they're just falling behind. >> why do you think shares -- i'm sorry, one second, roy. 10% is a huge move. that implies either that this is just people making a short-term bet on someone taking them over for a high price, or there is inherent value in the company. what might that value be, then? >> it's got to be if you're trying to add a different aspect
4:44 pm
to your business. for samsung, they're not in the software business. they're in the hardware business. but if they can -- they know that they can compete against android, they can have a solid basis to grow beyond that, and samsung's been known to take a little bit of freedom to build on top of their hardware, on top of their software, to give a little bit more in terms of feature value. whereas, blackberry has fallen short in every aspect. >> jefferson -- so many people coming around saying, you know, everybody's got an idea of who should buy blackberry. a trader came to me, a bunch of them talking, says jeff bezos. maybe a nebulous synergy going on with kindle and working it out with the "washington post." i had a tweet from a viewer saying, what about bloomberg buying it and using the handheld device for the trading terminals? everybody's got an application idea for blackberry out there. but is it too late, do you think, jefferson? >> well, i think it's too late. i'd love to imagine a world where the blackberry is part of the amazon family, and it ties
4:45 pm
in with the kindle, and amazon has wireless phone in a system that they can call their own. but they're going to need so many millions of dollars -- i mean, you're talking hundreds of millions of dollars that you would need to try to take on apple and google. and i just donee -- even as successful as amazon is, them being able to pull out that kind of cash to do it. i think the ship has sailed. the other problem -- as good as blackberry is, because many people just love it -- remember that the develop -- what makes these phones so great are the applications. that go on them. apple actually has almost -- a little bit more apps than google, and people go to the phones for the apps. we live in an app world now. app developers kind of stopped making them for the blackberry, because all of the action was at apple and google. >> all right. we just love it for the keyboard around here. thank you both. >> true story. that's how it works around here. >> we go from blackberry, considering a tech sinkhole to a real-life sinkhole. a dramatic story. 44-foot-wide sinkhole causing a
4:46 pm
three-story building to collapse at a luxury resort near walt disney world in florida. josh thomas has the story for us right now. josh? >> reporter: well, quite frankly, kelly and bill, there was very little warning when that huge sinkhole opened up, and basically it swallowed up what's left of one building here at the summer bay resort in clairmont, florida, just down the road, basically, from walt disney world. basically, when it happened, basically, as you have seen from the video probably, it basically sucked that building into a hole, again the geotechnical -- technicians are basically here trying to assess the damage, trying to figure out how big that hole is, how much farther it can spread, and basically whether it's under some other buildings in this general area, because as many people know, florida is susceptible to sinkholes. >> that was my next question. i mean, you guys have sinkholes in a lot of different places. i would imagine a lot of the surveys that are done try to figure that out. i guess somebody missed this one, right? >> reporter: well, apparently that may be the case.
4:47 pm
again, right now, those geotechnical technicians are basically all throughout -- not only that particular area of where that building is -- but all throughout this resort, again, to see if other buildings might end up in that particular -- that predicament. you would think basically engineers would be able to assess that situation before they start building structures on top of the ground. >> you would think so. >> thank you. nbc's josh thomas. thank you very much, sir. turning now to do business with sharks. it's not just shark week. barbara corcoran will join us on her attributes of start-ups. >> and did you know you are queen of real estate? you are now. whether she sees the housing recovery heading for another precipice. you're watching cnbc, first in business worldwide. oh, he's a fighter alright.
4:48 pm
since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at
4:49 pm
4:50 pm
. >> from shark tank and bar rescue, i've never heard of and cnbc's "the profit" they are the $12 billion reality tv business is transforming small businesses across america. all this week, we are talking with the stars of those wildly popular business shows on what it takes to make the big bucks in business these days. >> here today, the first lady of
4:51 pm
real estate, barbara corcoran joins us now. she stars in abc's "shark tank," which kicks off a new season next month. barbara, you start getting things off the ground. >> we sure do. >> what are the big ideas you are excited about? >> the big ideas is the technology, those you can make big deals. those aren't the ones we are seeing day in, day out. we see the single business. i love them all the exhibit (nurs, every -- entrepreneurs, this is what i fall for again and again. >> really? you like that? >> yes, i do. can you get yours hand around it. take a little business, make it really fast, big, fast, is what i wanted to say. did i get that right? >> yeah, you did. what about the impact reality tv has had on small businesses? people who are able to bring their ideas to a business person like you with a big deep pocket? >> the best thing that's ever happened, not just for people that get lucky on "shark tank,"
4:52 pm
but for all the people sitting at home, why didn't i think of that? i can work for myself people are thinking they'd rather work for themselves than the next hour. i say that's good for everybody. >> especially at a time when the economy and employment is changing. >> people trust themself, they can take things into their own hand and build a business for themselves and be the boss all the time. that's what gets a lot of people in business. it's encouraging that. i think that's great. >> what's the weirdest thing you invested in on "shark tank" and it turned tout work? >> there is nothing i invested in that was worried that turned out to work, but i can tell you that 100 i turned down, like the guy that puts the tube into his ear. have you to have it surgically removed when you run out of battery or the scientist who said he is going to turn my money into pure gold if i give him a million dollars to build a tower in the middle of the ocean. those are the whacky investments. anything whacky i stay away from. >> what do you look for?
4:53 pm
you want big, what? >> i want an entrepreneur with a fire in his belly, a guy who was a loser in school, or a gal who is investing in this idea. they run harder and faster than anybody else, they make it to the finish line. they listen to what you do. they re-invent themselves and they get there. the guy talking really fancy, wellet indicated, like he's the master of the universe, never makes it. >> they aren't necessarily going to make it to the show, what would be your income one piece of advice for them? >> do it right away. you don't wait until you have a wife and kids and a mortgage to contend with or get the self doubt that creeps in. there is nothing more beautiful than throwing yourself out. even with the wrong idea, if are you a good ent (fire, you will re-invent it and make a hit of it. >> you make made your dough in the real estate market. is this housing recovery for real, do you think?
4:54 pm
>> this is raerl than real. this is like a run-away train. you will be sitting here a year from now and be shocked with what's happening with prices. i remember saying a year ago prices were going up by 10%. people thought i was smoking dope. i wasn't. >> is it in your area? >> no, everyone waited. there is a glut of buyers out there. the housing market is golden. it's going to go through the roof. >> thank you for coming in. i really appreciate your time. >> "shark tank" starts again? >> the third week of september. i should have the date. keep looking to your tv. >> hopefully, they won't be fighting with time warner. >> no. >> barbara corcoran, we always love to have her on the show. >> wall street stock pros, give us more on fashion when we come back after this. .
4:55 pm
4:56 pm
4:57 pm
. >> it's that time tomorrow in 30. we got 30 seconds on the clock. our next guests are here to tell you what you should be watching for come the morning. we are joined bied that pringle and cliff davis, guy, thanks for joining us. chad, you first, 30 seconds on the clock. what are you watching?
4:58 pm
>> kelly, you have three economic data points, one fed governor speaking tomorrow. on the economic front, you have retail sales to come out. expectation is .4 of the print there. the inventory numbers will be coming out, expectation surveys 3%. the reproduction from the euro zone, the 1% will be your growth. lockhart will be speaking, the bank of atlanta, governor, we expect a dovish message from him going into the meeting tomorrow. >> all right. chad, thanks very much. ashley, over to you. >> kelly, thank you very much. at green haven we are focused on commodity investment. we are looking at three things tomorrow. one is we expect the crop mildly bullish to help john deer pot ash and mosaic, which were beat up recently. also, we are watching the dollar t. dollar index looks like it's making a second bottom here. if it can close above 8150, we think it will test recent highs
4:59 pm
and get back as much as 85. >> all right. >> finally, we are looking at natural gas, we think if it can hold its momentum, we'll have a recovery in equities there. >> okay. over to cliff. >> well, the fed comments were quite dovish. they give no indication as to when tapering will begin. although, it will begin sometime in 20 thrown. what's interesting now is the diversions between european and u.s. policy, right now, fed is going to be into taper. europe pines still into monetary easing. i think what you will begin to see when we come back from the holidays is a rotation from global markets into european equities. i think you will see the euro stocks and if footsie index begin to rally. i think you should check the stronger u.s. dollar versus other currency, such as the pound the euro. >> the irish market, bill, already at a five-year high. guys, thanks so much for all of those thoughts. we know what we have to watch in the morning. we appreciate it. >> our stockmarket has been near an all time high, although, we stumbled a bit down another 5 points on the dow t. nasdaq
5:00 pm
moved higher. apple did well today, talk of a new apple iphone coming out september 10th. mark that on your kamen dar the s&p was down about 2 points today, always a pleasure having you. >> thank you for having me. >> you are free to go back to "squawk" on the street tomorrow. >> can i get a cot here? >> that's it for closing bell. >> ""fast money"" begins right now. ♪ >> i'm mellissa lee. we havoe our guests. apple's next stop the tech giant usually rallies into stock launch himself. the stock is up 10% in just the past month. now, the next iphone event is scheduled to be september 10th. what is the trade this time around? >> i tend to stay bullish. i have been


info Stream Only

Uploaded by TV Archive on